1. Which of the following statements about trial balance is not tru?

a) it is useful for detecting errors

b) it is an important step in the accounting cycle

c) debit balances must equal credit balances

d) it includes only assets, liability and equity accounts

2. Which of the following statements about accumulated depreciation is not true?

a) it records the portion or how much the asset has been used up

b) it is contra asset account

c) it helps determine how much an asset can be sold for

d) it is reflected on the statement of financial position

3. Which of the following accounts normally has a credit balance?

a) accounts receivable

b) rent expense

c) dividends declared

d) accumulated depreciation

4. Which of the following statements is true?

a) the normal balance is always on the side of the T account that is increasing

b) the normal balance is always on the side of the T account that is decreasing

c) the normal balance is always on the debit side of the T account

d) the normal balance is always on the credit side of the T account

5. The closing process includes the following journal entries?

a) Dr. Revenues, Credit. R/E.

b) all of the above

c) Dr. R/E. Cr Dividends Declared

d) R/E. Cr. Expenses

e) none of the above

6. Which of the following is not an example an adjusted entry?

a) recording unpaid interest at year end relating to an outstanding loan balance at year end

b) recording the gain on the sale of equipment made during the year

c) recording the depreciation on office equipment purchased during the year

d) reducing the prepaid rent account for the portion of rent actually used